Stanley Black & Decker (SWK) derives more than half of its tools and storage sales from the United States, making it the company’s largest regional market. Organic sales in the company’s tools and storage segment grew by 10% in North America. Organic growth was led by double-digit gains in retail channels for construction (XHB) and do-it-yourself customers. Although shy of any numbers, the management stated that new product introductions translated into market share gains across product lines and added to the organic growth. A mild winter added 1%–2% in organic growth in the segment. Although most construction (ITB) projects are delayed through winter due to bad weather, this has not been the case this year.
Emerging markets contribute close to 18%–20% of Stanley Black & Decker’s tools and storage sales every year. Emerging markets delivered a stellar 9% organic growth in the tools segment as aggressive price recovery actions earlier in the year offset currency declines in select markets. The company’s new product launches in the mid-price-point range in price-sensitive emerging markets also aided organic growth. Latin America saw impressive growth in the mid-teens, with pricing gains in Mexico, Peru, and Argentina offsetting market headwinds in Brazil.
Annually, close to 15%–16% of the total tools and storage segment’s sales are derived from Europe. Performance in Europe was better than expected as the segment grew 5% organically in a weak market. Organic growth was led by market share gains, pricing actions, and year-over-year gains in the e-commerce channel.
Investors interested in trading in dividend-based ETFs could look into the ProShares S&P 500 Dividend Aristocrats ETF (NOBL). Stanley Black & Decker (SWK) forms 2.1% of the total holdings in NOBL. Other holdings in NOBL include Nucor (NUE) at 2.5%, Dover (DOV) at 2.2%, and Illinois Tool Works (ITW) at 2.3%.